EITC have become largely inefficient particularly during economic recession because they cannot assist most of the vulnerable groups who are unemployed. This would coerce many households into homeless sanctuaries during difficult economic times that are currently being experienced in United States which would be detrimental to children. In fact, the figure of shelter-based homeless households has risen sharply over the previous years.
The PRWORA restructuring seems to have been based on the accessibility of an increasing pool of low-income jobs, which could easily suck up ex-welfare recipients. However, even low-income jobs have become increasingly complicated to find during the last few years, placing the welfare system under great strain; and the theory of workfare has failed to operate. States struggling with plunging falling tax proceeds have reacted by reducing welfare programs and support.
In 2004, most states decreased welfare programs for vulnerable citizens such as Medicare support for the aged and children (Acs and Pamela 8). Supplementary programs offering home based care and dental care for the underprivileged have been seriously affected. Although welfare system has expanded job opportunities for underprivileged families, most of them are employed in low paying jobs frequently without employer-offered benefits. Researches on leavers indicate low earnings and wages for those who are working after leaving welfare.
Further, only approximately half of leaver’s labor in employments which provide paid leave and in many cases the typical earnings fails to exceed the poverty standard for a household of three and fewer have access to paid sick leave (Savner 4). Nearly a quarter obtain employer sponsored medical cover. The notion that exiting households have low income underscores the importance of admission to Medicaid, Food stamps, work supports, child support services and child care assistance for households leaving assistance.
However involvement in Medicaid and Food stamps declines sharply after households leave assistance, most working deserters don’t receive child support and child assistance. There are signs that factors impacting the fall in participation include rigid rules of eligibility, lack of awareness and administrative procedures that resulted in closing Medicaid and Food stamp cases when TANF cases were closed. Indications also exist that households who could gain form child care help after parting from welfare frequently do not obtain such help.
In state studies for those who have left the welfare program, almost thirty percent or even less of employed leavers indicate obtaining child care assistance in spite of the verity that nearly forty percent of employed low-wage single parents with kids aged below thirteen years have costs relating of child care averaging sixteen percent of family proceeds (Acs and Pamela 18). System Achievements A closer look on the achievements of the welfare program seems to suggest that the reduction in caseload has been successfully accomplished in manners that rarely translate into job opportunities for households leaving the program.
Similarly employment objectives have always been attained in manners that fail to translate into monetary security for households leaving or receiving welfare. Moreover households leaving the assistance program and working in low income jobs have often not been doing well in getting supports intended to boost workers earning low wages, such as child support and subsidized care for children, Medicaid and Food stamps.
The available evidence also reveals that simply exchanging low wage jobs for benefits does not in the real sense benefit children, while increasing household income does actually provide better future for children. several changes needs to be carried out to in the welfare system to improve employment results by promoting better initial employment, a bold emphasis on progression for low income workers, better connection to job supports for guardians joining and employed in low income jobs.